Liberty Oilfield Services Inc (LBRT)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 17.05 | 17.44 | 15.55 | 17.67 | 8.01 | |
| DOH | days | 21.41 | 20.93 | 23.47 | 20.65 | 45.55 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 17.05
= 21.41
The days of inventory on hand (DOH) for Liberty Oilfield Services Inc has shown a declining trend over the past five years. Starting at 45.55 days as of December 31, 2020, the company has managed to reduce its inventory holding period significantly to 20.65 days by December 31, 2021. Subsequently, the DOH slightly increased to 23.47 days by December 31, 2022, but then decreased again to 20.93 days by December 31, 2023, before slightly increasing to 21.41 days by December 31, 2024.
This trend indicates that Liberty Oilfield Services Inc has been more efficient in managing its inventory levels, which could result in lower carrying costs, reduced risk of inventory obsolescence, and improved cash flow. However, the slight increase in DOH in 2022 and 2024 suggests that the company may need to monitor its inventory management closely to maintain optimal levels and balance between inventory holding costs and stockouts.
Peer comparison
Dec 31, 2024